Global Economy to Shrink 3 Pct in 2020 amid Virus Crisis: IMF

Economy

Washington, April 14 (Jiji Press)--The global economy is expected to contract sharply, by 3.0 pct, this year due to the impacts of the coronavirus pandemic, possibly facing the worst recession since the Great Depression about 90 years ago, the International Monetary Fund said Tuesday.

The expected figure, shown in the IMF's latest World Economic Outlook report, would be far worse than the 0.1 pct contraction in 2009, during the global financial crisis triggered by the September 2008 collapse of U.S. investment bank Lehman Brothers, and the weakest since the Washington-based body started recording related data in 1980.

"It is very likely that this year, the global economy will experience its worst recession since the Great Depression," the IMF said.

In 2021, the global economy is projected to make a rapid rebound, growing 5.8 pct, according to the IMF.

The projections are under a baseline scenario, which assumes that the coronavirus pandemic will fade in the second half of 2020 and economic activity will return to normal.

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